| Show t t L RAPID TRANSIT I Ik k iWAR AT AN END 1 i I ar H Elevated Leased bK b j t f f tHe thC fHe L Inter Borough gh I i I ItEA LEASE tEA t KJ IS TO RUN YEARS I DETAILS OF OP THE AGREEMENT 1 A FF CIAL STATEMENT 1 II I M EW YORK roRK o N Nov V 26 The official Ial I I NEW N i made ade today I that th the i Manhattan Elevated Railroad company will willbe be leased to the Int r company compau which is isto isto isto to oper subway sUb ay now being bunt to take effect April 1 1903 The rental from April 1 1903 to 10 January 1 1906 1006 will be the net earnings of the Man hattan company not exceeding 7 per percent percent percent cent After January 1 1906 1006 the rental will be 7 T per cent cant flat fiat fth on Manhattan ManhattanS S stock aMok guaranteed gu by the company The Manhattan Railway company compan will increase its stock to 55 56 0 for the purpose of ot completing I improvements This is an Increase of f The Manhattan stockholders ers will be given the new stock at tt par Provision is to be made In the lease for the ultimate increase of or Manhat ManDat Manhattan Man at attan tan stock to the total amount of 60 the lease to be for or a period of or years Announcement Made The official announcement made by the two companies Is as as follows The boards of directors of the In Rapid Transit company company andY and of the MannaHan Railway com corn company company pany met this afternoon for the pur purpose pUrpose purpose pose of taking action relative to the Ute lousing leasing Manhattan Railway cow co copany pany to the company The lease will viti take effect on Aril 1 1003 to be for tor years and to cover coverall coverall coverall all the franchises fran and property of ot the Manhattan Railway company The rental from April 1 1903 to Jan 1 1 1906 will be the net earnings of oC the Manhattan company not 7 I Iper per cent after Jan 1 1906 the rent I will be 7 per cent per annum on the stock of the Manhattan Railway com corn company company I pany guaranteed by the I Rapid Transit company The Manhat Manhattan Manhattan tan Railway company stock is to be Increased at once once to for or the theA purpose of completing improvements already planned the present stockholders sto A ers of the Manhattan company to have havethe havethe the tl e privilege of taking the new stock pro pre rata at par Increase of Stock Provision is to tobe be made in the lease for the ultimate Increase of Manhat Manhattan Manhattan Manhattan tan stock to the total amount of 60 including outstanding stock and rind due provision is lo to ih made for tor forthe the fhe application of r the proceeds of the sale Hale of the increased stock to the further improvement ot ol the Manhattan p perty AThe The company will pay pa ten thousand dollars per pei annum to keep up the organization of the Manhattan company In addition to the dividend rental which shall shan lie paid to the stockholders and Man ManI I Rattan lattan stock will be stamped with a aS S contract of ot the company H to this effect The other details of of the lease will willbe willbe be bl those customarily adopted in similar cases c ses The lease will provide security satisfactory to the Manhattan for the thep p o atthe the dividend rental The boards of directors dI of both com corn companies companies panics at their meetings approved the general gener l proposition n and have author authorized authorIzed authorized their officers to prepare under the advice of counsel a lease which will wl willbe I be submitted to the board and to a I meeting of the stockholders for a al ai roval S Reas n For the Deal S August Belmont of ot the company gave ave out a statement this aft V r S in which he said The directors of ot the Rapid Transit company com anY have this day after previous long deliberation and in investigation Investigation Investigation determined for reasons which appear to them and controlling as affecting ng the interests not only of the stockholders of the company but of the th city and anti the tray trav traveling cling eling public to lease the Manhattan ManhattanS S system of ot elevated roads for a period of ot years on the terms given out this afternoon It Is not intended by this arrange arrangement arrangement arrangement ment that any of the plans for the development nt of the system system tem tern shall be Interrupted or departed from Nor is it intended to dispense with pony any ny additions which are desirable to the Manhattan property George J Gould president of ot the Manhattan company followed Mr II Bel Be monts statement with the following I have haye seen the interview with Mr Sir and so far as the Manhattan n si system stem is concerned we agree with him that a union the two ties brings about a conspicuously sat silt satisfactory satIsfactory solution of 01 o the rapid transit transitS S problem of the metropolis while at atthe atthe atS S the same time the advantage of a fixed guarantee by a corporation of the character of ot the Rapid Transit company will be d and accepted ac ept by the th stockholders of this company a large number of af whom wham have bave of course as negotiations h have uve progressed pr grassed looking to this lease leaseS S approved ed of the proposed plan planS S |
